Mooers Realty Maine Real Estate Blog
Mortgage Loans To Buy A Home In Maine
Mortgage loans to buy a home in Maine.
What types of home buying financing options are out there today to consider? Well for starters, always check with your local Maine mortgage lenders for the best service, lowest rates. To get advice you can trust. Local bank mortgage financing outlets remove the disconnect. The expensive time delay that out of your real estate market area home loan mortgage providers deliver. Remember, if financing is too slow, if the closing keeps getting pushed ahead, sellers can pull the plug. Decide to not extend the home buying contract agreement.
Let's face it, just talking all the initials jargon and hearing the bank mortgage financing lingo can make your eyes gloss over.
All you know is you want the best interest rate, the lowest closing costs and to have someone study your situation to pick the loan program.
To come up with the best home loan mortgage solution. This blog post outlines quick and easy the types of mortgage loans out there today for buying a home in Maine.
Mortgage loans to buy a home in Maine come in a variety of flavors.
You have your low down, no down payment options. Without a 20% down payment expect to pay for private mortgage insurance buying a Maine home. Maybe an adjustable rate home loan works best in your present situation. Or that local mortgage lender points you in the direction of a fixed rate loan. Regardless, remember to stop renting, start owning and don''t wait for interest rates to become more attractive.
Time is money, and what ever loan option you decide on remember. Your landlord would rather you kept renting than venture bravely out into home ownership. You can always refinance, make an extra house payment and maybe you won't even be in this same home in say five years time.
Mortgage loans to buy a home in Maine, what are the kinds to consider.
If you are now or were a veteran and served Uncle Sam honorably, take advantage of anything offered in your GI bill benefits. VA loans have many advantages. Veterans buying a home in Maine will find fees others have to pay are not required for the GI.
More on VA home loans.
FHA is another mortgage financing option to buy a Maine home. To know the best lending program to fit your needs best, you have to also consider the home you are buying. The handyman special, Mr Fix It home you the buyer plan to take your time overhauling. The mortgage underwriting department at your bank lender for a picky loan program may have other ideas. Wanting you to fix this long list of items outlined by the home loan property appraiser before the closing in three weeks. Don't assume the home seller will pick up the tab or to apply the hammer to in the areas to make the changes the bank loan officer expects.
Local lenders for your home loan know the properties in the area.
This is another reason to go local for your loan when buying a home in Maine. He or she can early on stop the show or help you consider other better suited lending options. With real estate financing it is never one size fits all. It is not a case of only a few options to offer the borrower buying a home in Maine today.
Who's Freddie Mac, was he a singer in a west coast grundge band With Stevie Nicks?
Or are somehow cheese and noodles or pasta involved?
Something five for a dollar college kids survive on when dirt poor?
Was Fannie Mae Freddie's girlfriend?
Is Ginnie Mae someone's mother in law or grandmother? You hear a lot of about Freddie and Fannie and need to know what the letter abbreviations stand. in determining which loan program you should be tapping into for your new home loan. For when reaching for the best home loan mortgage finance lending choice possible.
Buying a home is more than the monthly payment to consider.
Get pre-approved for a home loan before tramping in and out of them. Prior to making offers on any houses for sale, go get proof from the bank for lending pre-approval. To make any offers you present to be taken very seriously. To know you can buy this home if you want it and if the property owner decides to accept your offer.
Sometimes a jumbo or non-conforming home loan is considered buying a home. Jumbo sound like what's ordered when very hungry and you decide to super size your value meal through the drive through speaker doesn't it? Non conforming means you need lending for that property with loose end repairs and updates so the bank can sell the paper. On a property that does not quite fit into the typical single family residential lending template, non-conforming mortgage loans can work best.
More than one housing unit that is detached on the property, lots of auxiliary buildings like you find with a farm property listing? There are five not counting the farm home. In the black and white photo of where I grew up appearing in this real estate blog post today.
Other types of home loan mortgage options available today from local lenders?
No documentation home loans. What are those and why would they be needed to buy a house? A no doc mortgage home loan requires a signature, a mortgage application.
And the borrower can skip hunting down pay check stubs, bank statements or past yearly tax returns.
The no documentation home loans avoid jumping through the many other typical home loan mortgage requirements. Just gathering up the paperwork on conventional loans eats up a lot of time.
The no doc home loans are a good fit for complicated financial borrowers that are are pretty well off. Putting 35 to 45% down payments into the front end of the home mortgage lending can skip the need for many of the steps a weak buyer with credit issues and not able to bring much money to the table has to take.
Partnerships, corporate tax returns and mountains of investment paperwork to pour over is not needed in the no documentation home loan lending approach. Perfect credit, a CPA providing an accurate report the mortgage lender needs to assure this is a quality borrower to invest in. A borrower with liquid savings available to service the home loan installments, to pay property taxes, repairs and insurance fees makes a bank feel secure.
FHA and USDA home loans are two more popular mortgage financing options to consider.
What's the big difference or how are they alike? For starters, if you qualify for the USDA home loan mortgage, it's a cheaper lending program. The mortgage insurance is lower cost. FHA home loan mortgages work better if you don't have super duper credit score numbers and some issues in your financial history. The FHA loan rate is a half percent higher than USDA offers however.
The United States Department of Agriculture's set up the USDA home loans for financing family members of farmers. Also others with incomes low enough and depending on your family size in a rural area can combine to help purchase a home. So many homes in my area of Maine were bought with a dollar down and what was called FmHA home loans. There was interest subsidy one percent loans, moratorium on payment options to give you a break. But funding that dried up or only became available for low or moderate income categories of Maine home buyers. It was like the tide. Coming in or heading out to sea. Because it was tied to Congress. The Federal Housing Administration home loans, FHA mortgages started back in the Great Depression.
In rural Maine a half a percent higher or lower is not the end of the World because you are talking pretty inexpensively priced housing.
But if you are not kicking tires on a property say $60,000 and under home but rather a higher $200,000 residential listing like in the Portland Maine area market, it can be a big deal. The cost of financing can make or break your buying power. Like it or not move you to consider something in a lower price housing bracket. Suddenly giving up some of the housing features you really wanted in your home sale.
USDA home loans require now down payment if you have a 640 or higher credit score.
More USDA home loan mortgage information for buying a house.
FHA home loans have a mandatory 580 credit score and 3.5% down payment. The FHA loan insures the mortgage pays off the remaining balance to the lender if you the borrower get foreclosed on and lose your house. You can qualify for an FHA home loan with 500 to 570 credit score but those lower standards require a ten percent down payment.
The program bank underwriting requirements, more on FHA home mortgage loans.
Maybe the home for sale in Maine is in need of repair. The kind beyond a few items listed on the appraisal valuation report. Roof shot, so is the furnace? Check out the 203K FHA home loan for this kind of ailing property. The one with good bones but a full job jar of repair issues. Nothing that money and sweat equity TLC won't fix if you see the potential shining underneath the deferred maintenance "dirty but nice". Bad renters can really age a home. Up to $35,000 worth of repairs to the house is possible so you can buy the home that won't make it through the financing hurdles without cash infusion helping hand. The 203K FHA home loans is known as the renovation mortgage route to take buying a home in Maine.
Combo or jumbo loans to buy property in Maine. Those kind sound like something ordered through a drive thru when you super size the fast food right? Combo loan, it could be a combination of a first mortgage with attractive terms. Coupled with a second mortgage loan with different rates to make up for what the first mortgage did not cover.
I have sold farm properties in Maine with more than one mortgage.
The home and ten acres qualified for one low rate. The rest of the land mortgaged with another instrument securing the collateral for the real estate loan. Again, nothing beats local lenders in Maine banking to buy a home, to finance any type of real estate. They often know exactly where the property needing financing is located and can drive by, inspect it if they don't. Out of town lenders don't have that luxury.
The combined mortgages can be fixed, adjustable or one of each. Balloon payments where lump sums are applied say annually with the entire balance due in for example five years. This type of bridge loan financing is useful when selling what you have after you buy the new second home. Buying the new home before selling an old one explained.
Financing with a bank in Maine where the property is located, that knows the local lay of the land is huge. Better service, greater involvement in the Maine home town translated into a more enjoyable and valuable banking experience.
Owner financing a home in Maine to avoid the bank lending altogether?
It happens but usually land loans with the seller carrying the mortgage and offer owner financing is where you see that approach used. Never rule it out. It can't hurt to ask if you have a major chunk of change saved up for buying a home. To use as a down payment and with your good credit history to entice the seller to consider allowing you to buy a home with owner financing.
Construction mortgage loans might be needed when building a home on the land you are buying.
The house appraiser will visit the property in three steps to determine is the home going to be worth enough for the loan collateral. And he or she will be signing off each step of the way. Before the bank making the mortgage home loan signs off and advances the funds to pay the contractors building the new home sweet home.
The lender will want to make sure building milestones are met in the home construction. That no shoddy workmanship or undone areas to complete the home remain. These construction loans for building are higher priced than secondary mortgage market lending as a rule in my area. Where affordable housing is not a problem and there is a lot of DIY slow cooked home repair and construction happening.
Different types of mortgage loans, basically two categories of them, the government backed and conventional kind.
The government, non-conventional loans offer easier qualification, you can can through the door easier with lower credit scores and tad less restrictive income requirements. Also special blends of home financing are available from local lenders. Reach out, let us help you find the best fit for your housing need circumstances. Limited time special funding available on a first come, first serve basis does happen.
Maine's first time home buying programs are like that and blending a MSHA loan with VA or USDA, etc can help your bottom line. You are in Maine, folks want frugal and the best deal possible and should get just that with a little digging. Ask about Maine State Housing's $3500 help for down payment and closing cost assistance to buy a home.
Home insurance, owner's title insurance explained and remember, you will by law have to get provided a written good faith estimate of home buying closing costs.
To know where did all the money go to make sure that is where it ended up. Buying a home is a big step and being scared, excited and inbetween is normal.Is there a road association to pay dues to for maintenance, plowing?
What does the current property owner shell out, have for monthly operating bill expenses? These numbers are good information to get an idea of what to expect going in to the buying a home process. Not every home costs the same to operate. Not all home buyers dial in the heat thermostat the same either. Get a list of the third party providers who have already worked on the house before is good advice.
Knowledge helps you sleep nights so ask those questions keep you up tossing and turning. Three days before your real estate closing you review all the numbers so there won't be any surprises. The local bank lender will take the time to slowly explain each step of the mortgage loan process and to check all the numbers to make sure you are not paying out more than you should.
Pre-closing home inspections make sense before you sign your life away as they say. Everyone moved out, anything like trash left behind and is everything still working as it should in the home? No frozen pipes for heating or plumbing right? That's important when buying during the winter. Don't believe the real estate myth that nothing sells over the holidays, the winter months either.
Regardless of the way you financing a home in Maine, it boils down to the old saying.
How much can you afford and gettiung the cheapest money when financing a home. One weeks paycheck or two and a half times what you make a year. Those are the two schools of thought on how much you can afford. The bank lenders making the mortgage have their own numbers to run on debt ratios with your installment debt. You pay you stay, you don't you won't. That's about the size of it. Here's a home buying mortgage calculator to play around with and see how the numbers stack up.
Make sure to call your mortgage loan arranger, whoever it is servicing your mortgage.
After you get a house and when you have problems making a payment on the home loan don't put it off. There are temporary and longer term solutions to cover the change of circumstances after buying a home. Divorce, layoffs, medical ailments and operation recovery. Life happens. The bank lender does not want your property in foreclosure and will work with you on difficulties.
Check back because I will add more information on lending to help those in the market to purchase a house. Thank you for stopping by. Hope this real estate blog post on mortgage loans for buying a home in Maine is helpful.